B & B MICROSCOPES v. Armogida

532 F. Supp. 2d 744, 2007 U.S. Dist. LEXIS 70978, 2007 WL 2814595
CourtDistrict Court, W.D. Pennsylvania
DecidedSeptember 25, 2007
DocketCivil Action 06-492
StatusPublished
Cited by10 cases

This text of 532 F. Supp. 2d 744 (B & B MICROSCOPES v. Armogida) is published on Counsel Stack Legal Research, covering District Court, W.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
B & B MICROSCOPES v. Armogida, 532 F. Supp. 2d 744, 2007 U.S. Dist. LEXIS 70978, 2007 WL 2814595 (W.D. Pa. 2007).

Opinion

FINDINGS OF FACT AND CONCLUSIONS OF LAW

AMBROSE, Chief Judge.

FINDINGS OF FACT

B &B’s Business

1. B & B Microscopes, Ltd. (“B & B”) is engaged in the business of selling micro *746 scopes and imaging products in the states of Pennsylvania, Delaware, West Virginia, Ohio and Kentucky.

2. B & B is a distributor of Olympus America, Inc. (“Olympus”) products.

3. The products themselves include very sophisticated imaging and microscope equipment with prices reaching into the hundreds of thousands of dollars.

4. B & B’s business has changed over time. It started selling basic microscopes for low end research. Now it targets the high end research market. It takes hardware and software and integrates them and adapts them to the customer’s needs. The imaging side of the business has increased in importance to B & B and now drives the microscope sales.

5. In fact, B & B offers imaging software packages, including a package known as MicroSuite, which allows B & B to provide customized imaging solutions to its customers.

6. B & B employs both microscope sales representatives and imaging specialists. Their territories overlap and imaging specialists work with the sales representatives on imaging system sales.

7. The focus on imaging drives who B & B looks for in imaging specialist employees. It looks for smart people who can ascertain customer needs, who have programming capabilities and who can think creatively.

8. Imaging specialists typically work longer than a 9 to 5 workday because they must be responsive to their customers’ needs.

The Hiring of Armogida and His Job Duties

9. Andre Domino, a B & B manager, introduced Luigi Armogida (“Armogida”) — his nephew — to B & B. Domino believed that Armogida’s computer skills would prove beneficial to B & B.

10. In seeking employment with B & B, Armogida represented that he had advanced knowledge of computer hardware, operating systems, software, networking and programming languages, and an understanding of high resolution imaging, including image acquisition and storage options.

11. B & B relied upon these representations in hiring Armogida. He was hired to sell microscopes and to sell and provide custom imaging solutions to B & B’s customers.

12. Although he was not hired to develop a specific patentable product or invention per se, I find that Armogida was hired to develop customized imaging solutions for customers. If a customer required something that B & B did not then offer, then B & B’s imaging specialists, such as Armogida, had the task of developing the product.

13 Armogida entered into an Employment Agreement in 1998 and then executed an amendment to that Agreement in June of 2001. The amendment reflected Armogida’s move to Cleveland, Ohio.

14. The Agreement did not expressly require Armogida to assign rights in any intellectual property to B & B, nor did the Agreement expressly address inventing a particular product.

15. The Agreement did, however, provide that Armogida would not compete, either directly or indirectly, with B & B while employed or for a period of twelve months following termination. This provision was limited to a one hundred mile radius of any locality where B & B had retained or paid for the full-time services of any employees.

16. The Agreement also contained a clause prohibiting Armogida from removing records of sales, service, customer lists, or any other forms, or matters of *747 business pertaining to B & B, or any copies thereof, for his own use or for the use of others.

17. Though the term “imaging specialist” was not then used to describe Armogida’s duties, Armogida essentially served as an imaging specialist. He himself began using the term “imaging specialist” to describe his duties at a later date.

18 Armogida consistently held himself out as an “imaging specialist.” He used that designation on his business card and on his email signature. He explained that he was an “imaging specialist” because he could sell an imaging system based upon his understanding of how to configure software.

19 Throughout his employment, Armogida received training which enabled him to better perform his job as an imaging specialist. For instance, he attended seminars on the use of imaging software, macros and programming.

20. B & B always paid for the expenses associated with the training seminars.

21. Armogida did in fact develop custom imaging solutions for B & B’s customers. He helped Domino in the development of software for the St. Gobain project because Domino was unable to customize the solution himself.

22. The St. Gobain project involved an automated imaging system. The system automatically searched for defects.

23. Armogida consistently held himself out to others as someone who had developed automated and customized imaging systems while employed at B & B. In a July 25, 2005 letter Armogida represented that he had nine years of digital microscope imaging experience and seven years of experience as an imaging specialist.

24. Armogida himself stated that one of his then recent projects included “developing an automated system to map a crystal for optimal sectioning before installed as a gamma knife detector.” See Plaintiffs Ex. 17. Armogida also acknowledged that he “provided complete custom solution to that company to improve the quality of the detector they manufacture.” Id. He references “creating solutions” for individual projects. Id.

Development of the KPICS System

25. The Ohio Bureau of Criminal Investigation (“OHBCI”) has been a customer of B & B for at least ten years.

26. In February of 2005, David Navratil, a B & B employee, brought Armogida to the OHBCI to help him with a mobile cart demonstration. Navratil introduced Armogida to Dale Laux, a forensic scientist with the OHBCI, as an imaging specialist — a software specialist who understood computers.

27. Following the mobile cart demonstration, Laux showed Armogida the OH-BCI lab and discussed a product he had seen on the web made by a competitor which aided in the finding of sperm on slides. Laux expressed an interest in purchasing a system which would automatically scan a slide to find the sperm. 1

28. Armogida responded that such a system could be formulated.

29. Armogida then contacted Andrew Hunt, a co-owner of B & B, about the idea for an automated sperm finder system. Armogida was excited about the prospect of developing such a system.

30. I find that Hunt directed

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Bluebook (online)
532 F. Supp. 2d 744, 2007 U.S. Dist. LEXIS 70978, 2007 WL 2814595, Counsel Stack Legal Research, https://law.counselstack.com/opinion/b-b-microscopes-v-armogida-pawd-2007.